When the shareholders of Ann Taylor Stores, a national retailer of upscale women's clothing, brought suit against company management, the company was accused of misleading investors by hiding the fact that it had accumulated huge amounts of excessive and overvalued inventory. Although the company reported disappointing results, surprising Wall Street, management denied any wrongdoing. The financial press often reports incidents where management uses inventory accounting to manipulate earnings. What are the important topics and considerations related to inventory accounting?
When the shareholders of Ann Taylor Stores, a national retailer of upscale women's clothing, brought suit against company management, the company was accused of misleading investors by hiding the fact that it had accumulated huge amounts of excessive and overvalued inventory. Although the company reported disappointing results, surprising Wall Street, management denied any wrongdoing. The financial press often reports incidents where management uses inventory accounting to manipulate earnings. What are the important topics and considerations related to inventory accounting?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:When the shareholders of Ann Taylor Stores, a national
retailer of upscale women's clothing, brought suit against
company management, the company was accused of
misleading investors by hiding the fact that it had
accumulated huge amounts of excessive and overvalued
inventory.
Although the company reported disappointing results,
surprising Wall Street, management denied any
wrongdoing. The financial press often reports incidents
where management uses inventory accounting to
manipulate earnings.
What are the important topics and considerations related
to inventory accounting?
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